10 Best Working Capital Loans

While the best working capital loan may vary depending on your specific business needs, many will have a combination of low rates, flexible qualification requirements, and excellent customer service. Other common features include easy paperwork requirements, quick funding speeds, and a fast application process.

Working capital loans will allow you to use funds for nearly any business-related purpose. We’ve selected lenders that have a range of loan programs and characteristics, so you should be able to find one well-suited for your company. Here are our picks for the best small business working capital loans:

• Bluevine: Best overall for established businesses seeking flexible short-term capital
• U.S. Bank: Best for secured and unsecured loan options
• Lendio: Best broker for multiple loan types and options
• AdvancePoint Capital: Best flexible repayment terms
• Clarify Capital: Best broker for short-term business loans
• SBG Funding: Best for same-day and tailored funding options
• QuickBridge: Best for an easy application and approval process
• National Funding: Best for customer service and custom financing options
• Creditfy: Best broker for large business credit lines
• American Express: Best for businesses with low revenue

Best Working Capital Loans at a Glance

Bluevine: Best Overall for Established Businesses Seeking Flexible Short-term Capital

Why We Like Bluevine

Bluevine is our leading provider for the best small business working capital loans. It offers a line of credit product with one of the lowest rates on our list, fast approval and funding speeds, and the flexibility to draw funds as needed. For these reasons, we also selected it as one of the best small business lines of credit.

Compared to other lenders, it offers competitive rates and terms that allow businesses of all industries to partake in flexible financing opportunities. Notably, limited fees are involved with facilitating a loan, which is ideal for businesses with limited resources and credit history that need access to short-term financing.

You’ll need a business bank account to qualify, and Bluevine offers financing in most states—with the exception of Nevada, North Dakota, and South Dakota. It also has a list of ineligible industries, which include businesses involved with gambling, illegal or controlled substances, auto dealerships, and firearms. General partnerships and sole proprietorships are also ineligible for financing.

With a quick application and approval timeline, funding can be obtained rather quickly. You can apply online from the Bluevine website and get a decision in as fast as 5 minutes.

U.S. Bank: Best for Secured and Unsecured Loan Options

Why We Like U.S. Bank

For working capital, we recommend considering U.S. Bank’s Quick Loan program as a general purpose business loan. Examples of acceptable uses include building improvements, making technology investments, or covering marketing costs. Funds can also be used for equipment or vehicle expenses.

With a U.S. Bank Quick Loan, you can get a term loan with competitive rates, no origination fees, and a long repayment period. Depending on your business needs, you can apply for either a secured or unsecured Quick Loan. Unsecured loans do not require collateral, but you will be limited to a maximum loan amount of $50,000 and a 48-month repayment term.

To get the best rates, you’ll need to set up automatic monthly payments from a U.S. Bank checking or savings account. This gives you a 0.50% discount, and for the most well-qualified companies, this can help you get approved for the current lowest rates. If you don’t have a business checking account, see our U.S. Bank business checking review to learn about its features and fee structure.

To apply, you can visit the U.S. Bank website and submit an application or visit a branch nearest you.

Lendio: Best Broker for Multiple Loan Types & Options

Why We Like Lendio

Lendio is a business loan broker with over 75 lenders in its network. It also offers a wide range of loan products, including credit lines, SBA loans, and other term loans. With this many options and such a large network of providers, your odds of getting approved and finding a low interest rate loan can be greatly improved.

When you work with Lendio, you’ll be paired with a funding specialist who can provide personalized recommendations based on your business needs and qualifications. You’ll be guided through your options, and the specialist can also serve to confirm the best type of loan to help you meet your business goals.

While working with a broker can give you more options and improve your approval odds, one downside is that you may not know the exact qualification requirements or loan terms until after you apply. This is typically because your loan specialist must first conduct an assessment of your business qualifications before determining which of its lending partners can issue approval for the financing you’re seeking. The benefit, however, is that you can save time and money from having to apply separately to multiple lenders on your own.

Other products offered by Lendio include accounts receivable financing, commercial mortgage loans, startup loans, business acquisition loans, and business credit cards. Lendio can also help connect you with other business services, such as credit repair, bookkeeping, and legal assistance. To learn more or to apply, visit the Lendio website. There are no application fees, and submitting an application will not negatively impact your credit score.

AdvancePoint Capital: Best Flexible Repayment Terms

Why We Like AdvancePoint Capital

AdvancePoint Capital offers one of the most flexible repayment options for its business term loans. With a wide range of payment frequencies, you can choose one that suits your cash flow needs.

To get approved, you’ll typically need annual revenue of $250,000, but this can be flexible if your business has other compensating factors, such as a high credit score or strong financial reserves and assets. Required paperwork is generally minimal, as you’ll typically need to provide just 3 to 4 months of business bank statements.

Examples of circumstances where more paperwork is required can include seasonal businesses, in which case 12 months of bank statements may be needed. Business tax returns may also be required if you’re looking for more than $250,000 in financing, along with details on your accounts receivables and accounts payables.

Visit the AdvancePoint Capital website to learn more or to apply. It’s possible to get a same-day prequalification, and same-day funding may also be available depending on where you’re located.

Clarify Capital: Best Broker for Short-term Business Loans

Why We Like Clarify Capital

Clarify Capital is another business loan broker on our list. It also has a large network of over 75 lenders, with a wide range of loan types. If you’re looking for a short-term business loan, Clarify Capital can match you with a variety of lending solutions best suited to your specific business needs. It offers the highest short-term maximum loan amount in this guide, which can be useful for large business purchases that can be paid off quickly.

Just like the other brokers we’ve mentioned, it will pair you with a loan specialist to best match you with a loan suited to your needs. It can provide a high level of service, demonstrated by its 5-star rating on Trustpilot, and can also issue funding quickly, a feature that landed it a spot in our roundup of the best same-day business loans.

To learn more or to submit an application, you can visit the Clarify Capital website. Applications can be completed in under two minutes at no cost and with no impact on your credit score.

SBG Funding: Best for Same-day and Tailored Funding Options

Why We Like SBG Funding

With SBG Funding, you can get payment options tailored to your specific company’s needs. This can even include deferred payments for up to three months to help with cash flow concerns you may have.

Since the last time we covered SBG Funding, it has updated some of its terms and qualification requirements. Maximum funding is now advertised as $10 million (up from $5 million) for its term loan program, and eligibility criteria for things like credit scores and annual revenue have been adjusted upwards. It still advertises an overall approval rate of 85%, so you should have a decent chance of getting approved as long as you meet the minimum requirements.

While we’ve specifically recommended SBG Funding’s term loan, line of credit, and invoice financing programs, it also offers equipment financing, SBA loans, and bridge capital. If you’re unsure which is best for you, we recommend speaking with one of its lending specialists for guidance.

To apply, you can complete a loan application online. Doing so will not negatively impact your credit score, so it can be a good place to start if you have concerns about how likely you are to get approved.

QuickBridge: Best for an Easy Application and Approval Process

Why We Like QuickBridge

QuickBridge offers a simplified loan application process with minimal documentation requirements. As a result, you won’t have to provide nearly as much paperwork, which might otherwise normally include tax returns, profit and loss statements, balance sheets, bank statements, and other financial statements. This can be beneficial if you need quick access to funds or don’t have all of your documentation ready to go.

The lender also offers various loan products that can provide your business with flexible working capital, including short-term, bridge, and emergency loans. Also, it made our list of the leading easy business loans due to its simplicity and accessible qualification requirements for a wide variety of small businesses.

Notably, it also offers a quick approval process, usually within just a few days. Applications can be completed online, where a funding specialist will help guide you through the rest of the process and discuss financing options. To apply, you can visit the QuickBridge website.

National Funding: Best for Customer Service and Custom Financing Options

Why We Like National Funding

National Funding places a large emphasis on delivering a high level of personalized customer service, a fact that helped it land a spot in our roundup of the top unsecured business loans. The majority of its loans are retained in-house, and applications are reviewed on a case-by-case basis to maximize approval odds. You’ll do best with this provider if your business has strong finances and credit. With that said, it can work with startups and businesses with lower credit scores and limited business history.

Notably, it also grants an early payment discount of up to 7% on the remaining balance if you pay off the loan within 100 days of getting funded. National Funding does not require collateral to be pledged for a loan.

Like QuickBridge, it offers a streamlined application and approval process, with limited documentation necessary to apply. To learn more, you can visit National Funding’s website or speak to one of its funding specialists.

Creditfy: Best Broker for Large Business Credit Lines

Why We Like Creditfy

Creditfy offers various lending products with competitive rates, easy qualification requirements, and fast funding speeds. Its line of credit, in particular, offers high funding amounts, notably the highest on our list. With a loan approval rate of 90%, qualification criteria are inclusive of a variety of businesses with various business needs.

As with most other brokers, working with Creditfy means one of its loan specialists will work with you to find the lender best suited for your needs. You’ll be sure to work with an experienced individual, as Creditfy requires all of its representatives to have a minimum of two years of industry experience.

If a line of credit is not the right fit, you can also check out Creditfy’s other loan products, including equipment financing, invoice financing, and Small Business Administration (SBA) loans. To apply, you can visit the Creditfy website.

American Express: Best for Businesses With Low Revenue

Why We Like American Express

For businesses unable to meet high revenue requirements, American Express offers the lowest revenue requirement in our guide. Notably, its line of credit charges a monthly fee rather than a traditional interest rate. Monthly fees vary based on the length of the loan repayment period and the strength of your business qualifications.

• 6-month loans: 3% to 9% monthly
• 12-month loans: 6% to 18% monthly
• 18-month loans: 9% to 27% monthly
• 24-month loans: 12% to 18% monthly

Other fees that may be incurred include late fees which can range from $10 to $100 depending on the outstanding balance listed on the monthly statement. Balances between $35 and $500 will incur a late fee of $10, while the maximum late fee of $100 will apply if your loan balance exceeds $5,000. American Express credit lines do not carry any prepayment penalties.

You can complete an online application in just a matter of minutes. If approved, funding from any draw you take on the line of credit can be deposited into your bank account within a few days.

How We Chose the Best Small Business Working Capital Loans

The best working capital loans were selected based on the following criteria:

• Types of loans offered
• Interest rates, fees, and estimated APRs
• Loan terms
• Repayment terms available
• Qualification requirements
• Ease of application
• Documentation requirements
• Application, approval, and funding speeds
• Customer reviews and ratings

Types of Working Capital Loans

You may see lenders advertising different types of loans as working capital loans. To help you identify the type of loan best suited for your needs, here is a summary of common loan products you may see:

• Term loan: This provides a single lump sum of funds and generally has a repayment period between six months and 10 years. It is a good option if you need to finance a large purchase or do not have a recurring need for funds. Check out our article on the best fast business loans for some options.
• Small business line of credit: A small business line of credit is a revolving credit line that allows you to draw funds on an as-needed basis up to your credit limit and repay the balance over time. This flexibility makes it useful for covering recurring expenses or emergencies.
• Invoice financing: If you have issued invoices to customers but are still awaiting payment, you can get an advance on those funds with invoice factoring.
• Merchant cash advance: A merchant cash advance is an expensive form of financing that allows you to get a cash advance in exchange for a percentage of your credit card sales. This should generally be regarded as a last resort given its costs.
• Revenue-based financing: This allows your monthly payments to go up or down depending on your company’s revenue. It can be a good option for your business if you’re concerned about cash flow issues and have predictable sources of revenue. Head to our article describing how revenue-based financing works.

Factors to Consider When Comparing Working Capital Loans

When shopping around for a working capital loan, there are numerous lenders and loan offerings available. When determining what type of working capital loan is best for your business, there are a few factors to keep in mind when comparing options.

• Loan type: Whether it be a term loan, line of credit, or other specialized financing, figure out how you plan to use the funds for your business.
• Budget: Consider what you can afford for a monthly payment.
• Term of the loan: Determine whether the funds you need can be repaid in the short or long term.
• Qualification criteria: Some lenders have credit scores and annual revenue requirements. Ensure you meet these criteria before you apply.
• Collateral: Depending on the loan type and lender, consider collateral requirements and what you can offer.

Alternatives to Working Capital Loans

Although working capital loans can be used to cover a wide range of business expenses, you still need to meet the qualification requirements of a lender to get approved. Here are some alternatives if you’re having trouble getting a working capital loan:

• Startup business loans: These types of loans can be easier to get if you have been in business for less than two years or have lower revenue. Some startup loans require collateral to be pledged as security for the loan, while others allow for penalty-free access to retirement funds. Check out our list of different types of startup loans.
• Business credit cards: Similar to a line of credit, a business credit card can help finance as-needed expenses without having to request a draw. The balance can be repaid over time, and some cards may even offer rewards beneficial to your business. To find one that fits your needs, see our list of the best small business credit cards.
• Personal loan for business purposes: If your business finances or credit are presenting challenges when it comes to getting approved for a business loan, a personal loan may be an option. You’ll be personally liable for making the payments if your business fails, so you’ll need to consider that as a possible risk. Head to our recommendations for the best personal loans for business funding.
• Loans from friends and family: If you’re still having trouble getting financing, loans from friends and family can be one way to get around the traditional requirements of a bank. This option can also be less expensive than traditional methods of financing. If you’re unsure how to pursue this option, see our guide on raising money from friends and family to fund your business.

Frequently Asked Questions (FAQs)

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Bottom Line

The best working capital loans offer financing solutions that fit your business needs. The list we’ve provided considers favorable loan amounts, rates and terms, and qualification criteria. Be sure to work with a lender that offers lending products suitable to your needs and budget.